– On average, business rates rose by 18% in 2022 compared to 2021
– Over £2.6 billion in business rate relief was offered to businesses last year
– North West Leicestershire Council reported 29% increase in business rates
North West Leicestershire has seen the biggest increase in business rates over the last five years, according to new research by BPI Asset Disposal Solutions.
With many businesses feeling the reduction in spending due to the cost of living crisis, along with the ongoing increase in energy prices, business rates are a substantial cost for many companies to factor into their bottom line.
To understand the councils and regions that have seen the biggest increases in business rates, BPI Asset Disposal Solutions sent out Freedom of Information (FOI) requests to 317 local councils to discover the ‘average annual business rates costs, or current liability payable over the last five years’ and ‘the total value of the business rate relief granted in 2022’.
The top 10 councils which saw the biggest percentage increases in business rates charged²:
1. North West Leicestershire (29.13%)
2. Great Yarmouth Borough Council (22.19%)
3. London Borough of Lambeth (19.27%)
4. Dumfries and Galloway Council (16.24%)
5. Swale Borough Council (15.02%)
6. London Borough of Hackney (14.66%)
7. Ashfield District Council (13.63%)
8. Thurrock Council (12.44%)
9. Central Bedfordshire Council (12.17%)
10. North Lanarkshire Council (11.49%)
Of those councils that responded and recorded the information, North West Leicestershire Council came top for the biggest percentage increase in business rates, with a reported 29% increase across the last five years. Great Yarmouth Borough Council saw a 22.19% increase across the same time period, followed by the London Borough of Lambeth (19.27%).
Overall, the study found that, on average, business rates have risen by 18% when compared to the previous year¹, however local councils across the UK, granted a total of over £2.6 billion of relief in 2022.
Henry Spencer, Operation Director at BPI, said: “We understand that many businesses are feeling the impact of the ongoing economic uncertainty and cost of living crisis, so we wanted to understand what additional support businesses could be utilising to help through these difficult times.
“If you are struggling with rising business rates and are unable to take advantage of the relief available, reviewing your current plant and machinery, excess stock and other business assets and streamlining this will save you space and allow you to enhance your cash flow. Selling them through a commercial disposal specialist means you could have the cash in your bank in just a few short weeks”.
You can gain a deeper understanding of business rates relief here or find out more about the study here.
Sources:
- Data was received from 155 out of 317 local councils by a Freedom of Information Request on the ‘total value of the business rate relief granted by each local authority in 2022’.
- Data was received from 155 out of 317 local councils by a Freedom of Information Request on the total value of the ‘average annual business rates costs, or current liability payable over the last five years’.
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